The banking boom hit new heights in 2004 as profits rocketed to record levels on the back of a growing economy, expanding consumer lending and increasing market confidence. And the boom is unlikely to fizzle out soon.
The launch of the Capital Market Authority (CMA) in mid-2004 represents an important milestone in the development of the Saudi capital market and this year should see the intensification of flotations, a broadening of investment banking activities and, following the new capital market law, an expansion of insurance products. For banks, the strong economy based on strong oil revenues provides a solid foundation for growth but the new opportunities stemming from new legislation, consumer lending and investment banking add a new growth dynamic.
